Doctrine by topic · DGT Observatory

Mutual Agreement: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Settled doctrine High confidence 60 rulings · 2015–2026

Current position

Amounts received through mutual agreement resolution have the nature of employment income obtained in a notoriously irregular manner. The 30% reduction provided for in Article 18.2 of the LIRPF (Personal Income Tax Law) is applicable as long as such income is imputed to a single tax period. The limitation stating that the reduction does not apply if similar income has been received in the previous five years does not affect this case, as these are not earnings with a generation period exceeding two years.

The DGT's position has moved from considering that suspension allowances did not allow for the reduction, to establishing that resolution by mutual agreement does indeed constitute notoriously irregular income. The doctrine has consolidated around the requirement to impute the amount in a single tax year to access the benefit. Recently, it has been specified that the five-year limitation is not applicable to this type of income.

Turning points

  1. V1141-16

    Establishes that amounts from mutual agreement resolution are considered employment income obtained in a notoriously irregular manner.

  2. V5288-26

    Clarifies that the prohibition on applying the reduction due to having received other income in the previous five years does not apply, as these are not earnings with a generation period exceeding two years.

Analysis based on 58 of 60 rulings with a stated position. Updated 19 September 2026.

Rulings on this topic

24
V5288-26 28 Jul 2026

30% reduction can be applied to irregular income from mutual agreement

SG de Impuestos sobre la Renta de las Personas Físicas
rendimientos del trabajoreducción del 30%período de generaciónnotoriamente irregularmutuo acuerdo LIRPF — Ley 35/2006 del IRPF art. 18.2RIRPF — RD 439/2007, Reglamento del IRPF art. 12.1.f
Affects CompanyExpat · Non-residentIndividual
V5271-26 28 Jul 2026

30% reduction allowed on mutual agreement termination compensation

SG de Impuestos sobre la Renta de las Personas Físicas
rendimientos del trabajoextinción de relación laboralmutuo acuerdoreducción del 30%rendimientos notoriamente irregulares LIRPF — Ley 35/2006 del IRPF art. 17LIRPF — Ley 35/2006 del IRPF art. 18.2
Affects CompanyExpat · Non-residentIndividual
V1271-26 25 May 2026

Reduction of 30% for irregular earnings not applicable to fragmented payments

SG de Impuestos sobre la Renta de las Personas Físicas
rendimientos del trabajoreducción por irregularidadmutuo acuerdoperiodo de generaciónimputación de rendimientos LIRPF — Ley 35/2006 del IRPF art. 7.eLIRPF — Ley 35/2006 del IRPF art. 17.1
Affects CompanyExpat · Non-residentIndividual
V1022-26 6 May 2026

No refund of tax if sale contract resolved by mutual agreement

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
mutuo acuerdoresolución contractualhecho imponibletransmisiones patrimonialesdevolución de impuestos TRITPAJD — RDLeg 1/1993 de ITP y AJD art. 7.1TRITPAJD — RDLeg 1/1993 de ITP y AJD art. 31.2
Affects CompanyExpat · Non-residentIndividual
V1833-25 13 Oct 2025

No reduction of 30% on lump-sum settlement if paid in installments

SG de Impuestos sobre la Renta de las Personas Físicas
rendimientos del trabajoextinción de la relación laboralmutuo acuerdoreducción por irregularidadperiodo de generación LIRPF — Ley 35/2006 del IRPF art. 7.eLIRPF — Ley 35/2006 del IRPF art. 17
Affects CompanyExpat · Non-residentIndividual
V0369-25 20 Mar 2025

30% reduction possible on severance pay based on irregular earnings origin

SG de Impuestos sobre la Renta de las Personas Físicas
rendimientos del trabajoindemnización por despidomutuo acuerdoperiodo de generaciónrendimientos notoriamente irregulares LIRPF — Ley 35/2006 del IRPF art. 17.2.aLIRPF — Ley 35/2006 del IRPF art. 18.2
Affects CompanyExpat · Non-residentIndividual
V1001-21 20 Apr 2021

30% tax reduction unavailable if severance pay is spread over several years

SG de Impuestos sobre la Renta de las Personas Físicas
reducción del 30%rendimientos del trabajoextinción de la relación laboralmutuo acuerdoperiodo impositivo LIRPF — Ley 35/2006 del IRPF art. 18.2RIRPF — RD 439/2007, Reglamento del IRPF art. 12
Affects CompanyExpat · Non-residentIndividual

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